Family Size, Household Shocks and Chronic and Transient Poverty in the Philippine Households

Using panel data, this paper attempts to analyze the chronic and transient poverty in the Philippines. Results indicate that chronic poverty is the more substantial portion of the Philippine poverty with rural households and households in the Mindanao region as the more afflicted areas. This paper finds that both chronic and transient poverty are affected by negative shocks but negative labor market shocks affect chronic poverty while natural disasters affect transient poverty. Results also indicate that the number of dependent children positively affects chronic poverty but not transient poverty. Policies to lower both types of poverty in the Philippine context are suggested